Skill Premiums of Trading in International Markets and Equity: Some Lessons for Pro Poor Education Policies in Developing Countries

Mamoon, Dawood (2007): Skill Premiums of Trading in International Markets and Equity: Some Lessons for Pro Poor Education Policies in Developing Countries. Published in: Latin American Studies Association (LASA) CD-ROM, No. XXVII International Congress (August 2007)

Abstract

The aim of this paper is to examine whether the human capital accumulation, that is a result of increased trade, further exacerbates industrial wage differentials. We find that level of education is one of the key determinants in explaining wage inequalities. Though countries which have a higher level of human capital do well on the inequality front, our results suggest that post liberalization human capital accumulation is associated with higher premiums to skilled labor thus increasing wage gaps. In this context, governments in developing countries may need to increase the mean level of human capital to achieve equity in labor markets.

• Item Type: MPRA Paper
• Institution: Institute of Social Studies
• Language: English
• Keywords: Integration; Trade Liberalization; Wage Inequality
• Subjects: J - Labor and Demographic Economics > J0 - General > J01 - Labor Economics: General; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I20 - General; F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions

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